The amendments made by the Government of India in the foreign direct investment policy under which the proposed single brand retail investment by foreign companies have been raised to 100% from 51%. Which means now foreign companies will be able to sell its products directly to the consumer without having any dependency on local partners.
With this major reform Government of India have also allowed 51 Percent foreign direct investment (FDI) in the multi brand retail.
These reforms will attract lots of big global leaders to make their space in India. This will not only increase the supply of products but will help to take down the inflations and generate jobs openings. Economy will get the benefit with capital inflows from global giants which will to take up the front end and back end infrastructure in different segments.
Implication of the reform will bring great change in food processing, farming and small and medium enterprises. Strong backend infrastructure will help reduce the huge wastage which majorly impacts the prices of food products. This will also help reduce the difference between the farm gate price, wholesale price and retail price.
The big brands across the globe are looking forward to take the opportunity in hand to open mega stores in 53 major cities in India. Big brands will hit the market with mega stores which will bring competition in the market. This competition will provide additional benefits to the consumers with easy accessibility.